China's Haitian sees flat sales, profit in 2011

By Steve Toloken
Staff Reporter / Asia Bureau Chief

Published: March 19, 2012 6:00 am ET

Related to this story

Topics Injection Molding, Machinery, NPE 2012

NINGBO, CHINA (March 19, 5:05 p.m. ET) — The slowing Chinese economy put a dent in high-flying injection molding machine maker Haitian International Holdings Ltd., keeping profit and sales flat for 2011. But the Chinese firm reported that surging exports offset the tougher situation at home.

The Ningbo-based plastic equipment manufacturer said March 19 that 2011 sales were 7.027 billion Chinese yuan (US$1.11 billion), about even with 2010’s record high, with profit of 1.103 billion yuan (US$175.2 million), up 4 percent from 2010 and setting a new record.

It’s a big change from 2010, when the company saw sales and profit rise at least 80 percent as China’s economy boomed to the point of overheating. But Haitian said it was satisfied with the 2011 results considering the global economic problems.

Haitian, China’s largest press maker and one of the world’s largest, said that while markets are volatile, its economic outlook is improving from a low point in late 2011. It attributed that in part to the People’s Bank of China stepping back from its tight monetary policy and indications of a financial bailout for the Greek government.

“It is unrealistic to expect that the European sovereign debt crisis, the Chinese tightening monetary policies and looming concerns over the growth in [the] global economy can be entirely eased in the short-term,” Haitian said. “However, we already note some positive signals from the market in the beginning of 2012. … Our order level is gradually picking up from the trough of the end of 2011.”

Haitian said its domestic Chinese sales for 2011 dropped 7.2 percent, to 4.854 billion yuan (US$771.2 million), while export sales rose 17.3 percent, to 1.992 billion yuan (US$316.4 million).

It sees strong potential for continued export growth and is beefing up support for overseas markets, including setting up a team dedicated to multinational customers.

As well, the company said it plans to introduce new versions of its Mars, Venus and Jupiter models in the second half of 2012.

Haitian sold 27,000 injection machines in 2011, compared with 30,000 in 2010, but said the average selling price in 2011 increased 10 percent to 253,000 yuan (US$40,200), reflecting an increase in sales of medium- and large-tonnage machines and more technologically advanced presses.

Sales of its Mars machine, which has become its mainstay product, grew 7 percent overall to 5.163 million yuan (US$820.3 million), while sales of its newer, all-electric Venus models grew 77 percent, to 305.2 million yuan (US$48.4 million).

In general, the company claimed it weathered the difficult 2011 conditions in China’s market better than industry peers, and said it continues to focus on research and development.

For example, it launched a MuCell micro-cellular foaming system in China with American firm Trexel Inc., and won two second-prize Chinese National Science and Technology Progress awards for developments in 2011, the highest awards the company has won in its history. That marked the first time that award was given to a plastic injection molding machinery maker in China, Haitian said.

Haitian officials also said they have purchased 3.7 acres of land in Germany to expand their Zhafir Plastics Machinery subsidiary, which is headquartered in Ebermannsdorf, Germany, and are proceeding with an expansion of Zhafir’s production in Ningbo, which will increase production of the Venus machines from about 80 a month to at least 120.


Comments

China's Haitian sees flat sales, profit in 2011

By Steve Toloken
Staff Reporter / Asia Bureau Chief

Published: March 19, 2012 6:00 am ET

Post Your Comments


Back to story


More stories

Image

Milacron opening Mexico technical center, considers another in Brazil

December 16, 2014 12:58 pm ET

Milacron LLC plans to officially open a new technical center in Querétaro, 140 miles northwest of Mexico City, early in 2015, and the company is...    More

Image

Plastikos, Micro Mold working with local high school

December 15, 2014 6:00 am ET

The companies donated a 60-ton Demag injection press to the school, and Micro Mold’s general manager has worked with the high school's tool...    More

Image

Guangdong machinery maker adds another plant

December 15, 2014 6:00 am ET

TAIPEI, TAIWAN — Extrusion thermoforming equipment specialist Guangdong Designer Machinery Co. Ltd. plans to open a new 70,000-square-meter...    More

Image

New leader gives molder a spark

December 12, 2014 11:40 am ET

A dynamic 32-year-old woman is energizing a Woodstock, Ill., injection molding business that her grandfather, now 80, founded as a tool shop.    More

Image

Italian auxiliary company Moretto sets up a U.S. facility

December 12, 2014 1:09 pm ET

Italian auxiliary equipment manufacturer Moretto SpA has opened its first U.S. operation, in Columbus, Ohio, to handle sales, service and spare parts.    More

Market Reports

Flexible Packaging Trends in North America

Our latest RESEARCH report examines trends in FLEXIBLE PACKAGING impacting the North American market including a review of economic conditions, key drivers of growth, materials pricing, M&A activity, sustainability challenges and the outlook for 2015.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 billion plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events